Midco offers recommendations on ReConnect funding

It’s smart to try to find out what’s working on what’s not with federal funding for broadband – especially as we’re looking at tremendous amounts of funding soon. Hearing from providers is helpful; I hope they are getting feedback from communities too. NCTA reports…

Midco is a leader in the rural broadband industry serving over 490,000 homes and businesses across South Dakota, North Dakota, Minnesota, Kansas, and Wisconsin. The company has invested over $765 million in private capital in the last six years to extend and upgrade its fiber network – in places like Hartford, South Dakota – despite some of its communities housing less than 100 people.

At Wednesday’s hearing, Midco will share its experiences connecting the Midwest and discuss challenges and solutions facing rural broadband deployment.

Here’s a list of the problems they see…

  • The insufficient focus on directing funds to genuinely unserved areas wastes government resources and encourages overbuilding in areas already burdened by challenging economics.
  • Legacy application requirements for certain experienced businesses that discourage participation by companies.
  • The lack of sufficient coordination between the many agencies giving out broadband funding, which can lead to overbuilding and forum shopping.
  • The lack of flexibility in program speed thresholds to permit alternative platform solutions like fixed wireless to be used when the per-household costs of a terrestrial fiber solution may be cost-prohibitive.

Here are their recommendations…

  • Require that at least 90% of households in a proposed service area lack broadband access.
  • Prioritize applications in areas without 25/3 service.
  • Update buildout speed requirements that would consider different technological solutions to connect hard-to-reach areas.
  • Exclude funding in areas where providers have already been granted funding under another government program, unless used by the same provider for different expenses or to achieve expedited deployment milestones.
  • Simplify the application process.
  • Establish better communication between federal agencies to ensure transparency and avoid duplication of funding.

 

US Farm Bill may mean more broadband funding in the future

Fierce Telecom reports…

Congress already allocated $65 billion for broadband in 2021 via the Infrastructure Investment and Jobs Act (IIJA), but as negotiations over the 2023 Farm Bill get underway some are angling for even more cash to boost rural broadband.

According to the Congressional Research Service, the Farm Bill is a sprawling piece of legislation covering agricultural and food programs that is revisited every five years or so. The last Farm Bill was passed in late 2018, meaning it is up for renewal in the back half of 2023.

Though you might not immediately associate internet infrastructure with agriculture, rural broadband programs administered by the U.S. Department of Agriculture (USDA) have been a part of the Farm Bill since 2002. The ReConnect Program is probably the best-known of these, but the USDA also oversees the Telecommunications Infrastructure Program, Rural Broadband Program (RBP), Community Connect Grant Program (CCGP), and Distance Learning and Telemedicine Program (DLTP).

Annual appropriations for the last three – $350 million for the RBP, $50 million for the CCGP and $75 million to $82 million for the DLTP – were included in the 2018 bill and are set to expire on September 30 of this year. The ReConnect Program has received funding sporadically through separate legislation, including $2 billion from the IIJA in 2021. But the Congressional Research Service noted Congress could consider a longer-term funding mechanism for ReConnect in its 2023 Farm Bill.

ReConnect awards of $759 Million go out – two in Minnesota

The USDA reports…

US Department of Agriculture (USDA) is providing $759 million to bring high-speed internet access to people living and working across 24 states, Puerto Rico, Guam and Palau. The investments include funding from the Infrastructure Investment and Jobs Act, which provides a historic $65 billion to expand reliable, affordable, high-speed internet to all communities across the US. The $759 million in loans and grants comes from the third funding round of the ReConnect Program, including:

Here are the awards in Minnesota:

Mille Lacs Energy Cooperative $3,788,680
This Rural Development investment will be used to deploy a fiber-to-the-home network to connect 473 people, 15 farms and nine businesses to high-speed internet in Aitkin and Crow Wing counties in Minnesota. Mille Lacs Energy Cooperative will make high-speed internet affordable by participating in the FCC’s Affordable Connectivity Program.

Tekstar Communications $12,602,274
This Rural Development investment will be used to deploy a fiber-to-the-premises network to connect 3,113 people, 171 farms, 103 businesses and a school to high-speed internet in Douglas, Otter Tail, St. Louis, Stearns and Todd counties in Minnesota. Tekstar Communications Inc. will make high-speed internet affordable by offering its “Gig Price for Life” promotion for new services. Tekstar Communications Inc. also will participate in the FCC’s Affordable Connectivity and Lifeline programs.

Senators Klobuchar and Smith announce ARPA ReConnect funding coming to Freeborn, Morrison, Stearns, Todd and Houston Counties

Senator Klobuchar reports

U.S. Senators Amy Klobuchar (D-MN) and Tina Smith (D-MN) announced that they have secured significant federal funding to expand access to high-speed broadband in rural Minnesota communities. This investment, provided through the U.S Department of Agriculture (USDA)’s ReConnect program, will help connect over 6,000 people, 150 businesses, and 680 farms across Freeborn, Morrison, Stearns, Houston, and Todd counties. The American Rescue Plan, which Klobuchar and Smith supported and was signed into law last year, delivered significant supplemental funding for the ReConnect program. This affordable broadband will be deployed by Winnebago Cooperative Telephone Association in Freeborn County, Upsala Cooperative Telephone Association in Morrison, Stearns and Todd counties, and Spring Grove Communications in Houston County.

New ReConnect grants: three include MN communities

USDA reports

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that the Department is awarding $502 million in loans and grants (PDF, 221 KB) to provide high-speed internet access for rural residents and businesses in 20 states. The funding is part of the Biden-Harris Administration’s commitment to investing in rural infrastructure and providing reliable, affordable, high-speed internet for all. USDA is making the investments through the third funding round of the ReConnect Program. The Department will make additional investments for rural high-speed internet in the coming months, including funding from President Biden’s Bipartisan Infrastructure Law, which provides a historic $65 billion investment to expand affordable, high-speed internet to all communities across the U.S.

Three of the grants include communities in Minnesota

Winnebago Cooperative Telephone Association
Loan: 12,556,772
Grant: $12,556,772
This Rural Development investment will be used to deploy a fiber-to-the home network. This network will connect 3,597 people, 80 businesses and 458 farms to high-speed internet in Freeborn County in Minnesota. Winnebago Cooperative Telephone Association will make high-speed internet affordable by participating in the FCC’s Affordable Connectivity and Lifeline programs

Upsala Cooperative Telephone Association
Loan: $3,275,879
Grant: $3,275,879
his Rural Development investment will be used to deploy a fiber-to-the-premises network. This network will connect 1,595 people, 32 businesses, 101 farms, and one educational facility to high-speed internet in Morrison, Stearns, and Todd counties in Minnesota. Upsala Cooperative Telephone Association will make high-speed internet affordable by participating in the FCC’s Affordable Connectivity Program by providing low-income consumers who qualify up to $30 monthly service credit

Spring Grove Communications
Loan: $5,707,048
Grant: $5,707,048
This Rural Development investment will be used to deploy a fiber-to-the-premises network. This network will connect 983 people, 42 businesses, and 122 farms to high-speed internet in Allamakee and Winneshiek counties in Iowa and Houston County in Minnesota. Spring Grove Communications will make high-speed internet affordable by participating in the FCC’s Affordable Connectivity and Lifeline programs

ReConnect to invest more than $1 billion in broadband – applications open now

The https://www.usda.gov/media/press-releases/2022/09/09/biden-harris-administration-now-accepting-applications-1-billionUSDA reports…

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA is now accepting applications for ReConnect Program loans and grants to expand access to high-speed internet for millions of people in rural America nationwide. The Department is making more than $1 billion available, thanks to President Biden’s Bipartisan Infrastructure Law. The program is a critical piece of the Biden-Harris Administration’s commitment to connect every American to affordable, reliable, high-speed internet.

“Ensuring that the people of rural America are connected with reliable, high-speed internet brings new and innovative ideas to the rest of our country, and it remains a core priority for President Biden,” Vilsack said. “That’s why high-speed internet is an important part of USDA Rural Development’s work with rural communities. Reliable high-speed internet opens the world’s marketplace to rural business owners. It enables them to expand their businesses and give more jobs and opportunities to people in their own community.”

On Sept. 6, USDA began accepting applications for loans, with available funds of $150 million, grants with available funds of $700 million, and combination loan/grant awards using $300 million under the ReConnect Program. These funds were appropriated under the Bipartisan Infrastructure Law, also known as the Infrastructure Investment and Jobs Act. Governmentwide, the law provides an historic $65 billion investment to expand affordable, high-speed internet to all communities across the U.S.

The application deadline is Nov. 2. For additional information, see page 47690 of the Aug. 4 Federal Register (PDF, 231 KB).

USDA ReConnect Program Round 4 funding applications open Sep 6 to Nov 2

The USDA reports

U.S. Department of Agriculture (USDA) Rural Development Under Secretary Xochitl Torres Small today announced that the Department will begin accepting applications on September 6 for funding to expand access to high-speed internet for millions of people in rural America nationwide, part of the Biden-Harris Administration’s commitment to investing in rural infrastructure and affordable high-speed internet for all. USDA is making the funding available under the ReConnect Program, which received new funding from President Biden’s Bipartisan Infrastructure Law.

“High-speed internet connects people and businesses to new markets and helps people in rural America build brighter futures,” Torres Small said. “For too long, too many rural communities have been left out of the digital economy. This funding will help everyone in America – regardless of where they live – because rural people provide the everyday essentials our country depends on. Investments like the ones we are making through President Biden’s Bipartisan Infrastructure Law will help close the digital divide across rural America.”

USDA is making additional funding available for high-speed internet in Round 4 of the ReConnect Program. The Department will begin accepting applications on September 6 for up to $150 million in loans, up to $300 million in loan/grant combinations, and up to $700 million in grants. The Department will use funds appropriated under the Bipartisan Infrastructure Law, also known as the Infrastructure Investment and Jobs Act. The Bipartisan Infrastructure Law provides a historic $65 billion investment to expand affordable, high-speed internet to all communities across the U.S.

The application deadline is November 2.

Nobles County commits $2 million match for ReConnect application for broadband

The Worthington Globe reports….

One week after discussing the potential expansion of fiberoptic broadband throughout Nobles County, commissioners on Thursday authorized spending up to $2 million on the project — if the county is awarded a significant USDA ReConnect grant to support the estimated $21 million project.

Lismore Cooperative Telephone Company is proposing to complete the project with assistance from Finley Engineering, the firm hired by the cooperative to design and build the system. LCTC built up much of the rural broadband that currently exists within Nobles County, and this would expand on their efforts by delivering fiber to another 2,900 locations, serving an estimated 6,300 residents.

Nobles County Board chairman Gene Metz stepped down from leading the meeting prior to the presentation, instead taking a seat alongside his fellow Lismore Telecom board members to promote the proposal.

More details…

The cooperative’s board last week stated it would contribute $2.5 million toward the project. Of the county’s $2 million — which would likely come from its American Rescue Plan Act allotment — commissioners said Thursday they want to ask townships impacted by the project to consider designating some of their ARPA funds to it as well.

Since Worthington, Adrian, Ellsworth and Brewster are already served by internet providers, this new project would boost service to the communities of Bigelow, Reading and Dundee.

Chris Konechne with Finley Engineering told commissioners that the construction project is estimated to be completed in three years, pending the grant. Up-front engineering would be done in 2022, and there’s roughly a 30-week lead time for materials currently.

Senators Smith and Klobuchar announce applications open for USDA ReConnect broadband grants

KTOE report

U.S. Senator Amy Klobuchar (D-MN), co-chair of the Senate Broadband Caucus, and Senator Tina Smith (D-MN) announced that the USDA has begun accepting applications for loans and grants to help people in rural areas access high-speed internet. This funding was awarded through the USDA’s ReConnect program, which supports high-speed broadband infrastructure projects to improve connectivity for rural communities.

“While the enactment of the bipartisan infrastructure law will go a long way to strengthen  our nation’s broadband infrastructure, right now 16% of households in rural Minnesota continue to lack broadband at baseline speeds,” said Klobuchar. “The ReConnect program provides rural Minnesotans with the resources they need to access high-speed internet so they can work, study, and connect with loved ones online. I strongly encourage those that are eligible to apply.”

“Access to high-speed broadband is the infrastructure of the 21st century,” said Smith. “COVID-19 has made it even more clear that reliable broadband is necessary for telehealth, distance learning, remote work and more. With this new funding, rural areas will be able to develop their infrastructure, and contribute to a resilient community. I will continue working to direct more federal dollars towards Minnesota infrastructure projects to ensure we are pursuing a comprehensive investment in rural communities.”

Eligible applicants are state, local or territory governments; corporations; Native American Tribes; limited liability companies; and cooperative organizations. ReConnect funding is available for projects that serve rural areas where at least 90 percent of the households lack broadband service at speeds of 100 megabits per second (Mbps) (download) and 20 Mbps (upload). USDA will give funding priority to projects that will serve people in low-density rural areas and areas lacking internet access services at certain speeds.

Applicants must commit to building facilities capable of providing broadband service at certain speeds to every location in a proposed service area at the same time. In making funding decisions, USDA will also consider the economic needs of the community to be served; the extent to which a provider will offer affordable service options; a project’s commitment to strong labor standards; and whether a project is serving Tribal lands or is submitted by a local government, Tribal government, non-profit or cooperative.

Applications for funding must be submitted through USDA Rural Development’s online application system on the ReConnect webpage. For additional information, see the Oct. 25, 2021 Federal Register.